Student Debt Research Paper
The student loan debt need to be cancelled
-by John Doe
By using the Law of Demand, we know if we make all other factors remain equal, increasing the price of tuition costs will decreasing the quantity of students. Because when the tuition costs increase, more students cannot afford the cost, and their present value of attending school becomes lower than other choices because of the increasing cost, their net gain to attend school decrease or even become negative. So when the tuition costs increase, more and more students choose not go to school. In this way, more and more people become low skilled workers and earn less in the future, on the other hand people who have high degree become high skilled workers and earn more.
Asking students to …show more content…
From the Economist reported, there are more than 44 million borrowers with $1.3 trillion in student loan debt in the U.S. alone. The average student in the Class of 2016 has $37,172 in student loan debt. Student loan debt is now the second highest consumer debt category higher than both credit cards and auto loans, just behind mortgage debt. According to the National Public Policy and Higher Education Center, the median household income over the past 25 years has risen by nearly 150%, but the college tuition and fees skyrocket 439% at the same time. High tuition fees let students have more student loan debt, high student loan debt brings students much more pressure and these also have bad effects on their …show more content…
From Elyssa Kirkham’s report we know because of the payments of the student loan, most of the people are putting a large percentage of their monthly income towards their student debts, they aren’t spending on other economy-boosting goods or services. They’ll also have less money to save, invest, or even start a business. These are bad to the whole economy environment. Because if you need to repay high student loan debt, you will choose to spend less or they do not have enough money to buy goods. For example lots of student loan borrowers put off buying a car because of their student loan debt. Student loan debt makes less spending in the economy, this situation is not good. Because the running and growing of an economy cannot without money flow, so it can be said student loan debt can slow the financial
-by John Doe
By using the Law of Demand, we know if we make all other factors remain equal, increasing the price of tuition costs will decreasing the quantity of students. Because when the tuition costs increase, more students cannot afford the cost, and their present value of attending school becomes lower than other choices because of the increasing cost, their net gain to attend school decrease or even become negative. So when the tuition costs increase, more and more students choose not go to school. In this way, more and more people become low skilled workers and earn less in the future, on the other hand people who have high degree become high skilled workers and earn more.
Asking students to …show more content…
From the Economist reported, there are more than 44 million borrowers with $1.3 trillion in student loan debt in the U.S. alone. The average student in the Class of 2016 has $37,172 in student loan debt. Student loan debt is now the second highest consumer debt category higher than both credit cards and auto loans, just behind mortgage debt. According to the National Public Policy and Higher Education Center, the median household income over the past 25 years has risen by nearly 150%, but the college tuition and fees skyrocket 439% at the same time. High tuition fees let students have more student loan debt, high student loan debt brings students much more pressure and these also have bad effects on their …show more content…
From Elyssa Kirkham’s report we know because of the payments of the student loan, most of the people are putting a large percentage of their monthly income towards their student debts, they aren’t spending on other economy-boosting goods or services. They’ll also have less money to save, invest, or even start a business. These are bad to the whole economy environment. Because if you need to repay high student loan debt, you will choose to spend less or they do not have enough money to buy goods. For example lots of student loan borrowers put off buying a car because of their student loan debt. Student loan debt makes less spending in the economy, this situation is not good. Because the running and growing of an economy cannot without money flow, so it can be said student loan debt can slow the financial